Trendlyne Analysis
Indian markets slumped today. Nifty 50 closed at 18,534.40 (-99.5, -0.5%) , BSE Sensex closed at 62,622.24 (-346.9, -0.6%) while the broader Nifty 500 closed at 15,766.40 (-33.1, -0.2%). Of the 1,961 stocks traded today, 968 were in the positive territory and 934 were negative.
Indian indices extended their losses and closed in the red, with the Nifty 50 hovering above the key 18,500 mark. The volatility index, Nifty VIX, rose above 12 at the close. Indian sugar mills have shipped the entire quota of 6.1 million tonnes allowed for exports owing to higher prices. The quota is valid until September 2023, and the government may not increase the export limits due to the expected production shortage.
Nifty Smallcap 100 and Nifty Midcap 100 closed in the green, despite the benchmark index closing lower. Nifty Energy and Nifty Metal also closed lower than Tuesday’s closing levels. According to Trendlyne’s sector dashboard, telecom services was the top-performing sector of the day, as it rose over 2.2%.
Most European indices trade in the red, except for Switzerland’s SMI, which is trading higher. Data released by the French government indicated that inflation in May stood at 6%, slightly lower than the estimated 6.4%. Also, Italy’s data released today showed inflation at 8.1% in May, surpassing the estimated 7.5%. US indices futures are currently trading lower, indicating a negative start.
Relative strength index (RSI) indicates that stocks like Birla Corp, The Ramco Cements, Dixon Technologies (India), CG Power and Industrial Solutions and IDFC are in the overbought zone.
A fire breaks out at Oil India's Numaligarh refinery’s hydrocracker unit (HCU) in vessel number VV-04 on May 29, 2023. No casualties have been reported, and damage assessment is still underway. The cause of the fire is yet to be determined by an external investigation committee.
Vedanta's parent company, Vedanta Resources, pays off maturing loans and bonds worth $400 million (approximately Rs 330.7 crore) that were due in May and June 2023, according to reports. The company's gross debt now stands at $6.4 billion.
Reports suggest that 2.2 crore shares (3.7% equity) of Sona BLW Precision Forgings, amounting to Rs 1,093 crore, change hands in a large trade.
Commercial services & supplies, forest materials and cement & construction sectors rise by more than 10% over the past month.
Torrent Pharmaceuticals rises with a net profit of Rs 287 crore in Q4FY23, compared to a net loss of Rs 118 crore in Q4FY22. The increase in profit is attributed to lower raw material expenses. Its revenue also rises by 14.3% YoY on the back of robust growth in the international market. It appears in a screener of stocks with improving book value per share for the last two years.
ICICI Direct downgrades its rating on eClerx Services to ‘Hold’ from ‘Buy’ with a target price of Rs 1,800. This implies an upside of 12.3%. The brokerage believes the company’s prospects of achieving double-digit growth in FY24 will be challenging given its weak revenue growth in Q4FY23 and lower-than-expected margins.
Torrent Pharmaceuticals and Global Health touch their all-time highs of Rs 1,850 and Rs 612.5 per share, respectively. The former has grown 8.8% over the past month, while the latter rose 18.6% in the same period.
Lemon Tree Hotels falls despite posting a net profit of Rs 44 crore in Q4FY23, compared to a net loss of Rs 24.6 crore in Q4FY22. Its revenue also grows by 100.3% YoY, driven by strong growth in average room rates (ARR) and occupancy. It appears in a screener of stocks with decreasing promoter pledge.
Reports indicate that Ashwani Kumar has been appointed as the MD and CEO of UCO Bank by the Government. Kumar's term will last for three years, starting from June 1, following the completion of Soma Sankara Prasad's tenure.
Adani Ports & SEZ’s auditor, Deloitte Haskins & Sells, raises concern over the company’s transactions with three firms claimed to be unrelated parties. As the company refused to undergo an independent external examination to prove that the three parties were unrelated, the auditor cannot ascertain full compliance with local laws. Deloitte claims it can only issue qualified opinions on these accounts.
Apollo Hospital rises as its net profit increases by 60.3% YoY to Rs 144.5 crore in Q4FY23 on the back of reduced raw material costs. Its revenue also improves by 20.7% YoY, driven by robust growth in healthcare services and digital health & pharmacy distribution. It appears in a screener of stocks with strong momentum.
KRBL falls more than 5% as its net profit declines by 42.6% QoQ to Rs 118 crore in Q4FY23. Revenue reduces by 16.7% QoQ due to a drop in revenue from the agriculture and energy segments. EBITDA margin contracts by 7 percentage points on the back of higher finance costs and a contract termination that resulted in selling the product at a lower realisation.
Triveni Engineering'sannual return on equity (RoE) stands at 67.2% in FY23, rises 54.6 percentage points over the past five years.
CLSA upgrades Tata Motors' rating to 'Buy' and sets a target price of Rs 624. The upgrade is based on the retail sales growth of JLR in April. The brokerage adds that the company's strong performance in the American and Chinese markets has helped it offset the decline in Europe.
Patanjali Foods is falling despite its Q4FY23 consolidated net profit rising 12.5% YoY to Rs 263.7 crore. Its revenue also increases 19.3% YoY on the back of growth in the food and FMCG segments. It appears in a screener for stocks with low debt.
Welspun Corp rises as its Q4FY23 revenue surges 102.4% YoY to Rs 4070.1 crore, driven by improved performance in the steel segment. EBITDA margin expands by 6.8 percentage points YoY. However, net profit remains flat at Rs 235.9 crore. The company appears in a screener of stocks with increasing revenue for the past three quarters.
Prestige Estates Projects is rising despite its Q4FY23 net profit dropping by 50.1% YoY to Rs 468.4 crore due to a high base last year. In Q4FY22, the company recorded a one-time exceptional gain of Rs 807.9 crore. Its revenue rises 9.6% YoY and EBITDA margin expands by 5.1 percentage points YoY. It shows up in a screener for stocks in the PE Buy zone with high durability scores and rising momentum scores.
- SEBI proposes additional disclosures from foreign portfolio investors that have over 50% of assets under management (AUM) in one group and AUM of over Rs 25,000 crore in Indian equity. The regulator expressed concerns that the FPI route was being used by company promoters to bypass regulation and manipulate stock prices. This comes amid criticism over the lack of oversight over FPI ownership of Adani Group companies.
Graphite India is falling as its Q4FY23 net profit drops by 69.5% YoY to Rs 29 crore. Its revenue also declines by 10.4% YoY, driven by the graphite and carbon segment. It appears in a screener for stocks with low Piotroski scores.
Aegis Logistics remains flat despite its net profit rising by 48.7% YoY to Rs 140.9 crore in Q4FY23 on the back of falling inventory and employee expenses. Its revenue grows by 5% YoY, driven by robust growth in the liquid terminal division. Its EBITDA margin also improves by 460 bps YoY. It appears in a screener of stocks with low debt.
Reports suggest that 3.6 crore shares (1.7% equity) of HDFC Life Insurance Co change hands in the pre-open.
Metal & mining stocks like Vedanta, Jindal Steel & Power, Hindalco Industries, JSW Steel and National Aluminium Co are falling in trade. All constituents of the broader sectoral index BSE Metal are also trading in the red.
Suzlon Energy rises as its Q4FY23 net profit improves to Rs 279.9 crore from a net loss of Rs 204.3 crore in Q4FY22, driven by lower inventory and raw material expenses. However, revenue dips by 31.4% YoY due to lower wind turbine generator revenue. It appears in a screener for stocks with improving net cash flow for two years.
Adani Ports & Special Economic Zone’s Q4FY23 net profit rises 5.1% YoY to Rs 1,158.9 crore, while its revenue surges by 40% YoY led by robust growth in the ports and SEZ business segment. Impairment of Rs 1,273.4 crore due to Myanmar asset sale impacts Q4 profitability. The stock shows up in a screener for companies with improving cash flows from operations over the past two years.
Riding High:
Largecap and midcap gainers today include Torrent Pharmaceuticals Ltd. (1,835.80, 7.13%), Dixon Technologies (India) Ltd. (3,878.75, 5.33%) and PI Industries Ltd. (3,616.80, 4.17%).
Downers:
Largecap and midcap losers today include Adani Total Gas Ltd. (664.15, -4.86%), Delhivery Ltd. (349.20, -4.51%) and Adani Transmission Ltd. (776.70, -3.43%).
Crowd Puller Stocks
78 stocks in BSE 500 are trading on high volumes today.
Top high volume gainers on BSE included Suzlon Energy Ltd. (11.75, 10.33%), G R Infraprojects Ltd. (1,259.90, 8.81%) and Torrent Pharmaceuticals Ltd. (1,835.80, 7.13%).
Top high volume losers on BSE were KRBL Ltd. (364.70, -9.60%), Campus Activewear Ltd. (304.05, -8.32%) and Adani Total Gas Ltd. (664.15, -4.86%).
AstraZeneca Pharma India Ltd. (3,562.45, 6.54%) was trading at 27.7 times of weekly average. Sona BLW Precision Forgings Ltd. (541.55, 1.59%) and Kotak Mahindra Bank Ltd. (2,014.35, 2.01%) were trading with volumes 24.6 and 18.4 times weekly average respectively on BSE at the time of posting this article.
BSE 500: highs, lows and moving averages
37 stocks made 52 week highs,
Stocks touching their year highs included - 3M India Ltd. (25,245.00, 1.72%), AIA Engineering Ltd. (3,064.70, 3.13%) and Aurobindo Pharma Ltd. (658.60, 1.21%).
15 stocks climbed above their 200 day SMA including Eureka Forbes Ltd. (495.60, 9.39%) and G R Infraprojects Ltd. (1,259.90, 8.81%). 14 stocks slipped below their 200 SMA including KRBL Ltd. (364.70, -9.60%) and Century Plyboards (India) Ltd. (555.00, -3.28%).